On Friday, March 10, Elon Musk expressed his openness to purchasing Silicon Valley Financial institution following its collapse. Min-Liang Tan, CEO of Razer, instructed on Twitter that Twitter should buy SVB and rework it right into a digital financial institution. Musk responded briefly, stating, “I’m open to the concept,” with out offering further data.
I’m open to the concept
— Elon Musk (@elonmusk) March 11, 2023
On March 11, SVB Monetary Group, a lender that catered to startups, suffered a sudden collapse, inflicting turmoil in world markets and leaving doubtlessly billions of {dollars} price of capital owned by firms and buyers trapped.
Simply earlier than the weekend, California banking regulators shut down the financial institution by assigning it to a receivership below the Federal Deposit Insurance coverage Company (FDIC).
In a video message to workers, SVB’s chief Greg Becker said that he’s collaborating with banking regulators to seek for a accomplice for the financial institution. Nevertheless, he emphasised that there is no such thing as a assurance {that a} deal will probably be finalized. At present, the lender is below the management of the Federal Deposit Insurance coverage Company (FDIC).
SVB and different financial institution executives promote shares
On March 10, Bloomberg reported that Greg Becker offered $3.6 million price of firm inventory via a buying and selling plan on February twenty seventh. In keeping with regulatory filings, this was the primary time in over a 12 months that the CEO of dad or mum firm SVB Monetary Group had offered shares. Becker filed the plan on January twenty sixth, which permitted him to promote the 12,451 shares. The sale was carried out via a revocable belief that Becker manages.
Silicon Valley Financial institution CEO Greg Becker offered $3.6 million of firm inventory below a buying and selling plan lower than two weeks earlier than the agency disclosed in depth losses that led to its failure https://t.co/G8rFVzRpIs
— Bloomberg Markets (@markets) March 11, 2023
As early as final January, Becker mentioned the financial outlook was enhancing after a downbeat 2022.
“We’re optimistic as a result of our crystal ball is a bit of clearer,” Becker informed CNBC. Whereas he anticipated public markets to stabilize, “We nonetheless assume within the first half there’s going to be extra volatility.”
Earlier than serving as president and CEO of SVB Monetary Group, Becker was one of many co-founders of SVB Capital, the corporate’s funding division. Moreover, he held the place of chairman for the Silicon Valley Management Group from 2014 to 2017 and was a member of the Digital Economic system Board of Advisors for the U.S. Commerce Division from 2016 to 2017.
Final 12 months, Elon Musk carried out a sequence of inventory gross sales for Tesla to fund his acquisition of Twitter, which in the end brought about the share value to lower. In April, he offered $8.5 billion price of inventory, adopted by $6.9 billion in August, $3.95 billion in November, and $3.6 billion in December, totaling nearly $23 billion.
Neither Musk nor SVB has since responded to the Tweet.
